Contractor Evolution 212. How to Manage Budgets, Forecasting and Cash Flow Like Matt Risinger - Matt Risinger
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Apr 18, 2025 In this discussion, Matt Risinger, a prominent Austin contractor and founder of the Build Show Network, reveals effective strategies for financial management in construction. He shares how to master budgets and cash flow to avoid the pitfalls of speculative building. Risinger emphasizes the importance of industry benchmarks to remove guesswork in financial decisions. Listeners will gain insights on why his company never bids on work and how pre-construction processes can enhance profitability while fostering community and transparency in the industry.
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Matt's Near Bankruptcy Story
- Matt Risinger nearly declared bankruptcy after a spec house loss during the recession.
- He only turned profitable after paying off $300K investor loan and credit card debt by 2015.
Budget with Specific Actions
- Build an annual budget comparing last year's actuals with next year's plan line by line.
- Define specific actions behind changes in percentages to reduce waste and improve profit.
Small Percentages, Big Profits
- Small percentage improvements on costs greatly impact profit margins.
- Saving 1% on a $10 million business equals $100,000, enough to pay a full-time employee.